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Fidelity National Financial (FNF)
NYSE:FNF
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Fidelity National Financial (FNF) AI Stock Analysis

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FNF

Fidelity National Financial

(NYSE:FNF)

Rating:69Neutral
Price Target:
$62.00
â–²(9.87%Upside)
Fidelity National Financial's score is primarily driven by strong cash flow generation and a fair valuation, supported by a healthy dividend yield. However, challenges in revenue and profitability margins, as well as mixed technical indicators, suggest moderate performance. The earnings call provided balanced insights, with both strengths and challenges highlighted.
Positive Factors
Earnings outlook
The positive revision to 2025 was driven by a combination of management's commentary on Title margins and the compounding effects of higher F&G AUM resulting from strong product sales this quarter.
Interest rates
Recent movement in interest rates has raised optimism that mortgage activity could accelerate in the coming months.
Sales growth
F&G results were generally strong, with record AUM on strong sales growth in both their retail and institutional channels.
Negative Factors
Earnings performance
Adjusted EPS for FNF of $1.24 was below consensus of $1.32 and DBe of $1.29 with the miss driven by lower closed title orders.
Order activity
Title open orders were down 7% y/y for June, pointing to slowing activity.
Title volume
FNF posted 2Q24 results that were generally in-line with consistent on a combination of strong growth in FG, and soft volumes in title, but with resilient margins.

Fidelity National Financial (FNF) vs. SPDR S&P 500 ETF (SPY)

Fidelity National Financial Business Overview & Revenue Model

Company DescriptionFidelity National Financial, Inc. (FNF) is a leading provider of title insurance and transaction services to the real estate and mortgage industries. The company operates through various segments, including Title, F&G, and Corporate and Other. The Title segment provides title insurance and escrow services, while the F&G segment offers annuity and life insurance products. FNF is known for its comprehensive range of solutions designed to facilitate real estate transactions and protect property owners and lenders from financial losses related to title defects.
How the Company Makes MoneyFidelity National Financial generates revenue primarily through its Title segment by providing title insurance policies and escrow services that protect property buyers and mortgage lenders against losses from title defects. Title insurance premiums constitute a significant portion of its revenue. Additionally, the company earns income through its F&G segment, which sells annuity and life insurance products. FNF's earnings are further supported by strategic partnerships and acquisitions that enhance its service offerings and market reach. The company's diversified approach, combining insurance and financial services, enables it to capitalize on fluctuations in the real estate and financial markets.

Fidelity National Financial Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q1-2025)
|
% Change Since: -11.48%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong performance in the Title segment with increased margins and commercial revenue growth, as well as growth in F&G's assets under management. However, there were notable declines in net earnings and F&G's gross sales, alongside increased title claims paid. The sentiment is balanced, reflecting both positive achievements and challenges.
Q1-2025 Updates
Positive Updates
Strong Title Segment Performance
The Title segment delivered an adjusted pretax title earnings of $211 million and achieved an industry-leading adjusted pretax title margin of 11.7% for the first quarter, an increase of 100 basis points over the prior year quarter.
Commercial Revenue Growth
Direct commercial revenue reached $293 million in the first quarter, up 23% over the first quarter of 2024. National daily orders opened were up 19% over the first quarter of 2024.
F&G Assets Under Management Growth
F&G's assets under management reached $67.4 billion at March 31, up 16% over the prior year quarter.
Continued Investment in Technology and AI
Investments in technology have led to operational efficiencies, with a focus on AI to increase efficiency and productivity.
Share Repurchase Activity
During the first quarter, FNF repurchased 390,000 shares at an average price of $63.42 per share for a total of $25 million.
Negative Updates
Net Earnings Decline
First quarter net earnings were $83 million, including net recognized losses of $287 million, compared to net earnings of $248 million in the first quarter of 2024.
F&G Gross Sales Decrease
F&G's gross sales were $2.9 billion, down 17% compared with $3.5 billion in the first quarter of 2024, primarily due to lower MYGA sales.
Title Claims Paid Increase
Title claims paid were $65 million, $11 million higher than the provision of $54 million for the first quarter.
Company Guidance
During FNF's First Quarter 2025 Earnings Call, the company reported robust financial performance, with notable achievements across various segments. The Title segment delivered an adjusted pretax title earnings of $211 million and an industry-leading adjusted pretax title margin of 11.7%, marking a 100 basis point increase from the prior year's 10.7%. Total revenue for the quarter reached $2.7 billion, or $3 billion excluding net recognized gains and losses, consistent with the previous year. F&G's AUM before flow reinsurance rose to $67.4 billion, up 16% year-over-year, driven by strong indexed annuity sales. Adjusted net earnings for the company were $213 million, or $0.78 per diluted share, slightly up from $206 million, or $0.76 per share, in Q1 2024. The company also highlighted its strategic capital allocation, including share repurchases and investments in technology and M&A, while maintaining a strong balance sheet with a debt-to-capitalization ratio in line with their long-term target.

Fidelity National Financial Financial Statement Overview

Summary
Fidelity National Financial demonstrates strong cash flow generation and stable debt management, with some volatility in equity. However, declining revenue and profit margins present challenges. Overall, financial stability is apparent, but there is a need for revenue and margin improvements.
Income Statement
60
Neutral
The company shows a declining revenue trend with recent TTM revenue lower than the previous annual figures. Gross and net profit margins have decreased, indicating potential challenges in maintaining profitability. EBIT and EBITDA margins are also under pressure, reflecting reduced operational efficiency.
Balance Sheet
72
Positive
The balance sheet reflects a stable debt-to-equity ratio, with a manageable level of debt relative to equity. However, stockholders' equity has been volatile, previously negative, which raises concerns about financial stability. The equity ratio indicates a moderate level of equity relative to total assets.
Cash Flow
75
Positive
The company demonstrates strong operating cash flow, which exceeds net income, showing robust cash generation capabilities. Free cash flow remains positive, though growth has been inconsistent. The ratios of operating and free cash flow to net income suggest effective cash management.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue10.96B2.84B11.79B11.56B15.64B10.78B
Gross Profit6.29B2.63B10.23B9.84B13.71B9.02B
EBITDA677.00M2.58B1.46B2.34B3.84B2.17B
Net Income285.00M1.27B517.00M1.29B2.80B1.43B
Balance Sheet
Total Assets98.21B95.37B80.61B57.11B60.69B50.45B
Cash, Cash Equivalents and Short-Term Investments30.65B31.05B26.56B37.73B36.36B30.80B
Total Debt4.77B4.71B4.28B3.66B3.51B3.08B
Total Liabilities89.41B86.84B73.15B59.61B51.23B42.06B
Stockholders Equity7.89B7.75B6.91B-2.86B9.41B8.35B
Cash Flow
Free Cash Flow6.28B6.67B6.35B4.22B3.96B1.47B
Operating Cash Flow6.82B6.82B6.48B4.36B4.09B1.58B
Investing Cash Flow-7.64B-7.86B-9.09B-10.52B-7.45B-2.33B
Financing Cash Flow2.18B1.76B3.09B4.09B5.00B2.10B

Fidelity National Financial Technical Analysis

Technical Analysis Sentiment
Positive
Last Price56.43
Price Trends
50DMA
55.00
Positive
100DMA
58.57
Negative
200DMA
58.34
Negative
Market Momentum
MACD
-0.09
Negative
RSI
56.29
Neutral
STOCH
93.41
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FNF, the sentiment is Positive. The current price of 56.43 is above the 20-day moving average (MA) of 55.23, above the 50-day MA of 55.00, and below the 200-day MA of 58.34, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 56.29 is Neutral, neither overbought nor oversold. The STOCH value of 93.41 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FNF.

Fidelity National Financial Risk Analysis

Fidelity National Financial disclosed 9 risk factors in its most recent earnings report. Fidelity National Financial reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Fidelity National Financial Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$9.37B14.6213.20%1.69%6.18%-10.34%
74
Outperform
$5.72B8.3513.29%2.09%9.87%3.41%
73
Outperform
$6.07B8.5615.12%2.03%4.64%15.36%
69
Neutral
$15.26B13.7214.72%3.51%4.40%33.32%
67
Neutral
$5.92B37.993.23%3.62%-15.38%-2.87%
65
Neutral
$16.90B8,689.199.23%0.71%21.56%-21.27%
63
Neutral
AU$10.03B9.1111.83%4.86%33.36%41.81%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FNF
Fidelity National Financial
56.43
4.57
8.81%
AIZ
Assurant
184.71
17.63
10.55%
FAF
First American Financial
59.61
3.52
6.28%
MTG
MGIC Investment
25.56
1.64
6.86%
ESNT
Essent Group
56.40
-4.44
-7.30%
RYAN
Ryan Specialty Group
64.40
5.70
9.71%

Fidelity National Financial Corporate Events

Executive/Board ChangesShareholder Meetings
Fidelity National Financial Holds Annual Shareholder Meeting
Neutral
Jun 12, 2025

On April 14, 2025, Fidelity National Financial held its Annual Meeting where shareholders voted on several key proposals. The meeting included the election of three Class II directors, approval of the company’s redomestication from Delaware to Nevada, a shareholder proposal for annual director elections, a non-binding advisory resolution on executive compensation, and the ratification of Ernst & Young LLP as the independent registered public accounting firm for 2025.

The most recent analyst rating on (FNF) stock is a Buy with a $68.00 price target. To see the full list of analyst forecasts on Fidelity National Financial stock, see the FNF Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
Fidelity National Financial Completes Consent Solicitations
Neutral
Jun 4, 2025

On June 4, 2025, Fidelity National Financial announced the successful completion of its consent solicitations for amendments to the indenture governing its senior notes, following the receipt of requisite consents from noteholders. This move is part of the company’s proposed redomestication from Delaware to Nevada, which aims to facilitate operational changes, although the redomestication is not guaranteed to proceed even with obtained consents.

The most recent analyst rating on (FNF) stock is a Buy with a $70.00 price target. To see the full list of analyst forecasts on Fidelity National Financial stock, see the FNF Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 25, 2025